The NY Times: Qualcomm in Venture With Chinese Chip Maker


Semiconductor Manufacturing International Corporation (aka: S.M.I.C.), China’s largest maker of chips will form a new company with a leading Belgian microelectronics research center and Qualcomm. Unlike the cooperation SMIC had with the US chip giant previously, the plan this time involved the development of new generation of advanced chips that will be used in devices like smartphones and servers.

There were some of the glitches between Qualcomm and the Chinese government not too long ago. The outcome was a $975 million fine imposed on Qualcomm. As a result, many analysts see this as a tactic movement from Qualcomm to improve relations with the Chinese government.

“Qualcomm just had a huge settlement with the Chinese government, so from their perspective they need to be able to sell in China,” said Willy C. Shih, a professor of technology and operations management at Harvard Business School. “The logic is if they help S.M.I.C. manufacture Qualcomm chips in China, that improves their ability to sell those chips there.” Willy added.

the consequences of this deal? Does it have anything to do with Intel and TSMC?

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